For the weekend  09th Oct'20-Friday... Updated on 04.10.20, Sunday-03.30 pm

Last week Nifty trend: Nifty Index as expected and written last week, opened with positive note at 11140.85, beyond our expected opening band i.e, 11075-11085-11110 thereafter, the index moved up throughout the week, though it made a low 11099.85 on Monday, but it took a strong suppprt at 11185 and surpassed above 11400 and made a weekly high 11428.60 on Thursday and closed at 11416.95 with a weekly gain by 366.70 points i.e., 3.32%. 

This week Nifty Trend: The Nifty index may open on Monday i.e., 05th Oct'20, on flat note with positive bias, subject to the Asian market move, to test 11450-11495, if open and sustain above 11495 then, the Index may try to test 11530-11585-11620-11680-11735-11795-11845-11870 levels. On the other hand, the immediate support lies at 11375-11345 any further weakness below 11345 then, the Index may re-visit 11300-11250-11185-11155-11105-10985-10885 levels.

Key Events: This week, we can expect the handful of the major key events in the domestic and global front, they are:  The Supreme court verdict on the Interest on Interest waiver on the loans during the moratorium period from March to August'20, though the Union Governent told the Supreme court on Saturday that, they will take the burden on the Interest on Interest losses incurs by the banking institutions for the loan amount upto Rs.2 Crores, which is a great relief to the borrowers, the final verdict is expected to announce on Monday, the India Inc Q2 (Jul-Sep'20) results are expected from this week, TCS the major IT conglomerate, kick starts the result sesaon, it is expected to announce the Q2 results on 07th Oct and recently postponed RBI bi-monthlly meet which was suppose to be held on 01st Oct., may announce the meeting schedule this week, further the expectation on more stimulus package to revive the economy in US, the Indian Union Governmenat also may roll out some stimulus package this week, these factors may impact and influence the equity market coming week. The price valuation i.e,, Price Earnings ratio-PE, last week once again moved above 33 times, as of Thursday it was at 33.18 times. 

Special Mention: Last week, the Nifty Index able to take strong support near 11185, further it moved till 11400 and closed well above 11375, the Nifty Index coming week may test 11535-11620 levels, further move above 11620, may take the Index to re-test the recent high 11794.25 thereafter the fresh move till 11840-11870 also possible in the near term. At the same time any weakness at 11500-11620, then the sell-off may drag the Index once again till 11305-11185, any close below 11185 then, the Index may try to re-visit till 11015-10885-10790 levels.

Sector wise performance: Last week, all the major sectoral Indices witnessed a bounce back and closed in green with positive bias, the Nifty Metal Index lead the weekly gain by 9.10% followed by, Nifty Bank which was gained 6.02%, Nifty Energy gained 5.34%, Nifty Auto gained 3.87%, Nifty Realty gained 3.01%, Nifty IT gained 2.45% and Nifty Pharma & Nifty FMCG were closed with marginal gain by 1.96% and 1.27%, respectively. Nifty large/mid/small cap stocks were gained over 3-4%, they helped the Nifty Index to re-bound till 11400 levels.

Institutional Investors trading data: The Foreign Institutional Investors-FII's last week continued as a net seller in the Equity segment, last week they, sold to the tune of Rs.825.69 crores on the net basis whereas, the Domestic Institutional Investors-DII's, continued as a net buyer, they bought almost every day to the tune of Rs.1171.50 crores on the net basis, as per the data forwarded to the SEBI, the FIIs on Thursday pumped the fresh in flow in to the equity segment on a net basis Rs.1632.25 crores, we should wait and watch, how they behave coming week.

USD Vs INR: The USD Vs INR appreciated from the weekly high level i.e.,$73.84 and dragged down from the high level till $73.01 (please refer the last week outlook, i have mentioed this $73.01 as the support level i.e., $73.01, exacly it made low at $73.01) and closed on Friday at $73.18, further appreciation or depreciation depends on breaking below $73.01 on the lower side then, it may test $72.87-72.71-72.67-72.53-72.35 and resistance seen at $73.34, above this level, it may try to re-test $73.53-73.66-73.76-73.89-74.04.

Tading Strategy: The Investor/trader, those who invested during recent sell-off when the Nifty inded traded at 10800, start book profit for 10-15%, if the Nifty index moves near 11530-11620 levels. This is a traders market, to trade for short term gains, rather to wait for the long term basis.

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Wishing you for a safe and secured with profitable trading.